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2011 Strategic Plan – Optimize the Web

2011 Strategic Plan – Optimize the Web

2011 Strategic Plan Optimize the Web

A Digital Corporate Culture Business Model for Today/Tomorrow

Internet Networks, Marketing, Peer-to-Peer File Sharing Exponential Growth

This focus of this article is to discuss the broad based subject of the Internet and Internet strategy within the context of old line companies. These are companies that continue to embrace today, the traditional corporate culture of yesterday with very linear go forward strategic planning. Forecasting and decision making based solely on historical data tend to deliver subpar results. The Internet can be a disruptive force to old line companies who now may find themselves at a cross-road.

First, some background on the Internet, then over to evaluate a business model with a digital culture, p2p data exchange and an Internet corporate strategy. The essence of the Internet is based on file sharing and the essence of peer-to-peer file sharing goes one step further as a central server bypass utilizing direct user to user Internet connections. When you look at the early developmental stages of the Internet and compare it to where we are today, as is the case more often than not, the global nature and broad based data exchange technology certainly was not fully contemplated.

We can begin by looking back at the Social Network aspects of the Internet and their implications. Next, move past the hype that began with Napster then later with Facebook, Skype and similar Web based Social Network applications and extend into the p2p, B2B, C2C and the business WWW opportunity.first some history on peer to peer file sharing.

1970/80's File sharing began with the development and use of FTP file servers, bulletin board systems and Usenet during the late 70's and 80's. FTP, or file transfer protocol, is a client-server system that is used to copy a file from a host computer to another computer through a TCP/IP network such as the Internet. In bulletin board systems, users connect to the system through a terminal program. Once connected, users can upload and download files, read posted bulletins and exchange messages. Usenet, which uses a client-server protocol, allows users to chat and distribute files as attachments through news groups.

1990's Internet Relay Chat (IRC) systems with file exchange provisions allowed the transfer of files from person to person. Peer-to-peer file sharing technology emerged in the late 1990's. By far the most notable p2p file sharing site application was Napster which became the fastest growing file sharing application in the history of the Internet. The mp3 music file sharing site launched by Napster exploded onto the scene in 1999. With Napster, a central server only indexed the information on shared files. Users hosted the files on their own computers and not the central server, thereby enabling users to transfer files directly from one user to another. An mp3 or MPEG-1 Audio Layer-3 standard file compressing technology is used in the music industry to preserve the original sound quality when it is played.

1999 The launch of Napster by Shawn Fanning at age 19 and co-founder Sean Parker has been generally credited with being the first popularized single subject p2p file sharing platform. The mp3 pop music files were stored on virtually millions of primarily college student hard drives. Napster, which was Fanning's nickname at Harwich High School, offered a free mp3 song sharing internet service that singularly in many ways changed the face of music forever and Internet data exchange functionality in general, with no small measure of it driven by Fanning and Parker.

Their goal was to create a free web based file sharing music community. In February 2001 2.79 billion mp3 files were traded on Napster and as a sidebar clearly demonstrated the word-of-mouth' power of the Internet. The short lived euphoric rise of Napster lasted only about 7 months as the major record labels and Metallica fearing for their financial destruction, brought about the legal closure of Napster. Although Napster was shut down the more broadly based understanding of p2p file transfer technology was now in the public domain and has since gone well beyond mp3 music streaming from successors like Gnutella, Limewire (now also shut down), Frostwire, (Limewire successor),Kazaa, BearShare over to a whole host of other Social Network and business network applications.

There is no question the Internet is a disruptive force for many old line businesses however it is no doubt the launching pad for new businesses, notably Google and more recently Facebook, driven by Sean Parker and Mark Zuckerberg now has 500 million users and a market value of $30 Billion, while the market dominant web browser Google, now ten years old, has a market cap of $160 Billion.

2011 - Fast forward to the marketplace of today/tomorrow and beyond the Social Network aspects of the Internet. For an old line company to include the migration to a digital culture in their business plan, may represent a huge opportunity, AKA a more-better-different culture. Instead of a company intimidated by all aspects of digitalized p2p data sharing, video/voice Skype conferencing, Twitter, Yammer and so forth, the company embraces a dynamic culture with an e-corporate footprint that attracts the very best talent in the industry as opposed to an old line culture with a mediocre, static workplace environment.

In addition to a dynamic website that may include product lines and specifications, a remote customer order entry call center (like Sears's center located in the Philippines), shopping carts, PayPal and UPS 1 day turnaround delivery, and a very different business model. Another step may be a digitalized Knowledge/Content Management System (KMS or CMS). These systems replace either vaporware or text based archived information and come in many forms involving the codification of knowledge with formalized protocols and user content rules within a closed network.

In a similar way to the original Facebook where data file sharing on a closed network was only available to students at Harvard University, the same firewall and user ID and content restrictions would apply in a corporate environment. Intercompany/inter-branch communication, planning and training also via Skype would be far a more effective tool. Internal Audit would be the custodian to ensure proper policies and procedures were followed.

Industry based intracompany p2p file sharing networks with similar content rules, user protocols and firewall protection could also serve as an industry competitive advantage in dealing with the threat of foreign imports, legislative changes or embracing technological information sharing.

For a company looking to adopt an Internet/digital strategy, first would be qualitative research, followed then by a Business Case for senior management. With Business Case approval the next step would be a detailed Project Implementation Plan. An old line company then well positioned going forward.
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2011 Strategic Plan – Optimize the Web